Strategic Management Report: Analyzing New Moon Loon Supermarket

This report conducts a strategic management analysis of New Moon Loon Supermarket, a UK-based retailer. It begins with an executive summary and an introduction to the company, followed by a PESTEL analysis of the UK market, examining political, economic, social, technological, legal, and environmental factors. The report then applies Porter's Five Forces to assess the competitive landscape, and a SWOT analysis to identify internal strengths and weaknesses, and external opportunities and threats. A stakeholder analysis is also provided. The report then develops SMART objectives, analyzes market segmentation, positioning, and targeting, and examines the marketing mix. The significance of the marketing mix is discussed before concluding the report. The analysis aims to provide insights into the company's strategic position and potential for growth in the competitive UK retail market.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

1
STRATEGIC MANAGEMENT
Executive Summary
The report has thrown light in analyzing the external and internal environment of New Moon
Loon Supermarket which is situated in London, United Kingdom. As per the officials of Amazon
company, the company’s external and internal analysis are needed to be analyzed which helped
them in improving their progress in a suitable manner. After the analysis of the external and
internal environment, it has been noticed that there are few opportunities which can be helping
the company in maintaining their position and compete with Tesco or Sainsbury. Moreover, the
company mainly segmented the working individuals and health conscious customers as in the
present scenario; they prefer to consume foods which are healthy. Lastly, from the marketing
mix, it has been noticed that the company have certain opportunities and strengths which will be
used by them in an appropriate manner.

2
STRATEGIC MANAGEMENT
Table of Contents
Introduction and Overview of Company.........................................................................................2
PESTEL Analysis of the Company in UK Market..........................................................................2
Porter’s Five Forces Analysis of the Company...............................................................................4
SWOT Analysis and Stakeholder Analysis of Company................................................................6
SWOT Analysis...........................................................................................................................6
Stakeholder Analysis of New Moon Loon Supermarket.............................................................8
Development of SMART Objectives for Company........................................................................9
Analysis and Justification of Market Segmentation, Positioning and Targeting Selection...........10
Marketing Mix of Company..........................................................................................................11
Significance of Marketing Mix......................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

3
STRATEGIC MANAGEMENT
Introduction and Overview of Company
The report throws light in analyzing the marketing plan of the small or the medium sized
retailer named New Loon Moon Supermarket based in London, The United Kingdom. It is one
of the local supermarkets which has not been capable of spreading their effectiveness and
presence in the different other countries. The New Loon Moon Supermarket is one of the organic
and fresh vegetables company which is centrally located for the fantastic and experiences. The
main aspect which is being added by the company is quality ad flavor of the products which are
sold by them to the different customers (Newmoonloon 2020). It is less famous than the major
supermarkets of UK such as Sainsbury or Tesco as they have their online presence in different
parts of the world and they are able to improve their effectiveness through the help of the
competitive approaches available to them.
PESTEL Analysis of the Company in UK Market
Political Factors- In the political aspect, it is seen that the company is operating in
London, United Kingdom, there is certain level of uncertainty instability in the political
environment which will be impacting performance of the company. In addition, there is import
duty on the different goods which will be impacting New Moon Loon Supermarket as it imports
few of products from China and Japan (Wu and Li 2018). In addition, there is high level of tax
included on products which needs to be reduced for making the future effective and efficient in
nature.
Economic Factors- The cost related to labor is the important factor which can be
impacting New Moon Loon supermarket negatively. For instance- the annual wage bill is GBP

4
STRATEGIC MANAGEMENT
5 billion and the upward kind of shift has been costing New Moon Loon of pounds in the UK.
There are various other factors which can be affecting the supermarket that includes costs, profits
and prices (Stead and Hastings 2018). In such scenario, the organization needs to focus on
increased level of borrowing in the United Kingdom market and it will be increasing costs as
well as prices and decrease the level of profitability. However, the diversification is the key
element of New Moon Loon which has been suitable for them in serving the different Chinese
restaurants present in the locality.
Social Factors- In the current scenario, the trends of shopping among the different
customers are changing as they are having tough schedules to deal with. In such scenario, they
prefer the one stop shopping approach which will be helpful for them in meeting their needs. In
such scenario, the new Moon Loon Company is able to serve the customers as per their needs
and help them in managing their effective in a suitable manner as well (Spyropoulou et al. 2018).
Technological Factors- It is the other aspect wherein the technological innovation and
advancement are the two major approaches which have been implemented by them for
embracing the sales. However, in comparison to the other large supermarkets such as Tesco,
wherein the in-store experience has been highly effective in nature, New Moon Loon is lacking
and they need to improve their self check out system appropriately (Papadas, Avlonitis and
Carrigan 2017).
Legal Factors- In the business environment, there are different legal aspects such as strict
code of ethics and conduct which was being followed by the company. In such scenario, the
company needs to maintain their operations in a successful manner for reducing the fraud related
aspects in a successful manner (Nasim 2018).

5
STRATEGIC MANAGEMENT
Environmental Factors- There are different UK companies which are facing pressure on
the governmental agencies for addressing environment related issues. However, in such scenario,
New Moon Loon Supermarket encourages their shoppers in shopping through the official portal
which helped them in reducing the usage of plastic bags and minimize the environmental
pollution (Mehrabi, Coviello and Ranaweera 2019).
Therefore, from the PESTEL Analysis, it can be seen that the company New Moon Loon
has been capable of improving their business practices in a successful manner which will be
capable of attracting new group of customers in the market which will be suitable for gaining
high level of revenues and profitability.
Porter’s Five Forces Analysis of the Company
With the help of the five forces analysis, the different sources of achieving the
competitive advantage. Therefore, in order to analyze the different kinds of competitive
environment of New Moon Loon, the five forces analysis will be helpful in understanding the
following:
Threat of Substitute Products- It is high in nature as there are different other competitors
such as Tesco or Sainsbury which are capable of offering the different kinds of products with
high technological advancement present in it. In the food retail market, there are different kinds
of licenses along with other essential taxes available which are less in case of New Moon Loon
(Massingham and Pomering 2017).
Threat of New Entrants- It is low in nature in the entire retail industry as there is high
level of capital requirements present in the market which will be affecting the business of the
new companies negatively (Liu et al. 2017). There are different major brands present such as

6
STRATEGIC MANAGEMENT
Tesco or Aldi which have been capable of capturing the market. In such scenario, the different
new entrants should have the ability in producing something at an exceptional low price which
will be suitable for establishing their market value which can be proving to be quite difficult.
Intensity of the competitive Rivalry- It is high in nature as in the market of retail industry
in UK, New Moon Loon faces intense level of competition from the different direct competitors
such as Sainsbury or Asda or Waitrose (Leonidou et al. 2017). In such scenario, it is noticed that
the major competitor of New Moon Loon is Sainsbury which have been successful in generating
high level of profitability and it impacted the growth prospects of the company negatively.
Bargaining Power of Buyers- It is high in nature as there are different alternatives
present for the individuals which help them in choosing from the various aspects which are
present. In many cases, there are different kinds of aspects such as switching cost which is high
and it can be impacting the effectiveness of New Moon Loon negatively (Lancaster and
Massingham 2017).
Bargaining power of Suppliers- It is low as it needs to be noted that the different
suppliers who are present in the retail industry in the market of UK, they are mainly inclined
towards the major grocery as well as food retailers and they have dread in losing their business
with the large supermarkets (Kotler et al. 2018). In such scenario, it will be affecting less the
New Moon Loon and it will be the effective opportunity for them in increasing their business
with the help of the same.
From the Porter’s Five Forces Model Analysis, it can be concluded that there are few
threats and few opportunities for the respective supermarket that will be beneficial for them in
applying the opportunities and it will be effective for their growth in a suitable manner as well.

7
STRATEGIC MANAGEMENT
The New Moon Loon Company have certain traits such as the organic food elements and
centrally located in London helps them in becoming effective supermarkets among the lot.
SWOT Analysis and Stakeholder Analysis of Company
SWOT Analysis
The SWOT analysis of the New Moon Loon Company will be capable of identifying the
internal strengths and weaknesses and external opportunities and threats.
Strengths
Firstly, the main strength of New Moon Loon Supermarket is that they are specialized in
selling the different organic food items and other products which will be suitable for the present
generation who are health conscious and prefer to consume the different food items which are
healthy in nature (Kotler et al 2017).
The supply chain network is highly efficient in nature as with the simplified kind of the
business network and reduction in the current costs, there are different effective waste
management policies which help New Moon Loon Supermarket in improving their prospects in
the competitive business environment (Jackson and Ahuja 2016).
The strong financial performance in the market of London is the other strength of New
Moon Loon Supermarket wherein the products are being customized as per the needs of
customers which help them in gaining strong market share suitably (Kotler et al 2017).
Weaknesses

8
STRATEGIC MANAGEMENT
Poor operational performance in the market of UK is the first weakness due to which it is
impacting their performance to a certain extent. The stores in different parts of UK are not
performing as per the expectations due to which their business prospects are deteriorating in
nature (Houghtaling et al. 2019).
In the last few years, New Moon Loon Supermarket is not being able to perform
efficiently in the market and due to which it can be creating troubles for the company in
increasing their profitability and growth prospects negatively.
Opportunities
Expanding their business operations in different other countries is the first approach of
opportunity which can be used by them as it will be helping them in increasing their business
prospects and gain competitiveness. It will be successfully able to compete with other retailers
which are present such as Aldi or Tesco (Houghtaling et al. 2019).
Online Shopping is the other opportunity which can be adopted by New Moon Loon
Supermarket as it will be opening wide scopes for the business to improve their profitability and
generate high level of revenues and profitability in the market successfully (Gleim, Smith and
Cronin 2019).
Threats
High Level of Stiff Competition is the first threat which can be faced by New Moon Loon
Supermarket as there are different large supermarkets such as Tesco or Sainsbury which are
performing tremendously in an efficient manner (Datta, Ailawadi and Van Heerde 2017). With

9
STRATEGIC MANAGEMENT
the rise in growth as well as performance of Tesco, the value of New Moon Loon Supermarket
can be threatened in the market of United Kingdom and impact their sales negatively as well.
The high decline in the income of the different individuals along with high level of
unemployment can be creating negative impact on the buying behavior of the different
customers. It will be directly or indirectly impacting the performance of the New Moon Loon
Supermarket in an inefficient manner (Damanpour, Sanchez‐Henriquez and Chiu 2018).
Stakeholder Analysis of New Moon Loon Supermarket
The stakeholder analysis is capable of examining both internal and external stakeholders
of New Moon Loon Supermarket wherein the main approach is related to exploring their
influence on the company.
Internal Stakeholders
The main internal stakeholders of New Moon Loon Supermarket include managers,
employees, executive and board members and committee along with shareholders. Like any
other company, employees are the vital aspects of New Moon Loon Supermarket along with
managers (Chu 2018). The board of New Moon Loon Supermarket consists of chief executive
officer, chairman along with Chief Financial officer who are considered to be highly powerful
and important for the company.
External Stakeholders
The major external stakeholders of New Moon Loon Supermarket include suppliers,
customers, and creditors along with the other competitors which are having the strong presence
in the UK market. In order to serve their customers in an efficient manner, New Moon Loon

10
STRATEGIC MANAGEMENT
Supermarket mainly focuses on the quality of the products which are delivered by them to the
customers and it helps them in improving their progress to a large extent as well (Chu 2018).
From the analysis of the internal and external stakeholders of New Moon Loon
Supermarket, it can be seen that there is strong influence of the different stakeholders on the
performance of the company. For example- The chairman along with the different chief financial
and executive officers are capable of analyzing the strategic direction of the company. In
addition, the suppliers are the critical aspect in every business as they provide New Moon Loon
Supermarket with the different products and other elements whenever there is a strong
requirement of the same (Camilleri 2018). Additionally, the different competitors such as Asda,
Lidl or Sainsbury are creating significant kind of pressure on the different employees of the
company which is affecting their business. In such scenario, New Moon Loon Supermarket
needs to implement certain technologies which will be efficient such as online shopping portals
for customers as it will be increasing their presence and it will be improving their brand image in
the entire market (Camilleri 2018).
Development of SMART Objectives for Company
 To develop the customer as well as store led culture and team which will be beneficial for
them in improving their level of profitability in the market efficiently to 5 to 6% within
the next one year
 To analyze and implement the different health and safety policies for the employees
working within the company as it will be capable of serving them in an efficient manner
and achieve the high level of profitability within the stipulated time

11
STRATEGIC MANAGEMENT
 To make sure that the different employees follow the different policies regarding health
and safety as it will be lowering down the accident rates to more than 40% in the next 2
years
 To aim in reducing the staff and customer accidents to a large extent as it is realistic in
nature and it will be beneficial for New Moon Loon Supermarket in improving their sales
growth rate in the next few years
 To take 2-3 years in advance to achieve the above aims which will be suitable for them in
becoming one of the largest supermarkets like Tesco or Sainsbury in the entire market of
UK and expand
Analysis and Justification of Market Segmentation, Positioning and Targeting Selection
Analysis of the Market Segmentation
In case of segmentation, the core aspects of New Moon Loon Supermarket include
behavioral as well as geographical segmentation approaches. The company tries to utilize the
market of United Kingdom as their geographical location for selling the different products to the
customers (Blut, Teller and Floh 2018). On the behavioral side, the company aims in pushing
itself as the mid-tier brand and the main idea of New Moon Loon Supermarket is to capture the
market of UK and diversify their business in other countries as well on the concept of best
products and value for money.
Analysis of the Targeting
On the respective aspect, the main target customers include the housewives along with
the working individuals who prefer to purchase and get all the products under one roof.
Moreover, as the customers are becoming high health conscious, in such scenario, New Moon